U.S.-based sports activities betting platform DraftKings has reached a settlement with the Nationwide Soccer League Gamers Affiliation (NFLPA) over allegations of unpaid royalties for utilizing NFL participant likenesses in non-fungible tokens (NFTs).
In a joint letter filed on January 27, DraftKings and the NFLPA knowledgeable New York federal Choose Analisa Torres that that they had mediated the dispute and arrived at a settlement in precept.
The events requested a 60-day keep of the lawsuit, giving them till March 28 to finalize the settlement.
Settlement Awaits Choose Torres’ Approval
Particular phrases of the settlement stay undisclosed, pending Choose Torres’ approval.
The authorized battle stems from DraftKings’ 2021 partnership with the NFLPA to create tradable NFTs for a fantasy sports activities sport referred to as Reignmakers.
The partnership soured after DraftKings ceased funds to the NFLPA in 2023, citing a federal courtroom ruling that categorized the NFTs as securities underneath the Securities Act and the Trade Act.
Following the ruling, DraftKings shut down its NFT market in July 2023.
The NFLPA filed a lawsuit in August, reportedly in search of as much as $65 million in damages, though the precise determine was redacted.
The affiliation additionally accused DraftKings of threatening to halt the NFT choices altogether. Regardless of the tensions, the 2 events agreed to restructure their contract earlier than reaching the settlement.
The timing of the proposed settlement is notable, coming simply weeks earlier than the NFL’s Tremendous Bowl on February 9 in New Orleans, Louisiana.
The NFL Gamers Affiliation (NFLPA) just lately settled their lawsuit towards DraftKings concerning compensation for player-related NFTs. This comes shortly after DraftKings determined to close down their NFT market in July. 1
— Holden Harris (@holdenwithcare) January 28, 2025
As soon as a hotspot for crypto promoting, the Tremendous Bowl has since shifted its focus, with no crypto-related adverts showing final yr following the collapse of FTX in late 2022.
NFT Gross sales Surge Previous $8.8 Billion in 2024
NFTs wrapped up 2024 with annual gross sales reaching $8.83 billion, in accordance with CryptoSlam information.
The determine represents a 1.1% improve from 2023’s $8.7 billion, signaling a modest rebound for the digital collectibles market.
Ethereum and Bitcoin led NFT gross sales in 2024, every producing $3.1 billion, whereas Solana adopted with $1.4 billion in annual gross sales.
When it comes to all-time figures, Ethereum maintained its dominance with $44.9 billion in gross sales, trailed by Solana at $6.1 billion and Bitcoin-based NFTs at $4.9 billion.
Though 2024 confirmed development in comparison with 2023, the market stays far under its peak years. NFTs achieved $15.7 billion in gross sales in 2021 and a document $23.7 billion in 2022.
The 2024 whole marks a decline of 43.9% and 62.8%, respectively, from these highs.
The market started recovering late in 2024, following a seven-month hunch that bottomed out in September with the bottom gross sales since 2021.
October gross sales rebounded by 18%, hitting $353 million, and November noticed a six-month excessive of $562 million. December closed the yr with $877 million in gross sales, the fifth-highest month-to-month determine of 2024.
Ethereum-based collections fueled December’s resurgence, accounting for $482 million of the month’s gross sales.
Bitcoin-based NFTs contributed $172 million, whereas Solana collections added $100 million.
Prime-performing collections in December included Pudgy Penguins, which led with $115 million in gross sales.
Different notable collections similar to Azuki, LilPudgys, CryptoPunks, Doodles, and Bored Ape Yacht Membership collectively introduced in $141 million, solidifying the NFT market’s regular restoration.
The publish DraftKings Settles with NFL Gamers Affiliation Over NFT Participant Likeness Dispute appeared first on Cryptonews.
